The results of Korea's first national public clean ammonia auction, known as CHPS, were released yesterday afternoon. CHPS is set to establish price benchmarks for blue and green ammonia through 15-year binding supply agreements and provide visibility into CCUS and freight costs. Yesterday, a Korean media outlet timely published a report. Thanks to ChatGPT for translating it into English ( be mindful of translation accuracy)- "The CHPS has been awarded to KOSPO's Samcheok Green Power Unit 1. According to industry sources on the 22nd, the KPX has notified KOSPO of its selection as the priority negotiation target for CHPS. The competitive bidding for CHPS, which closed on the 8th, saw participation from five companies, including KOSPO, South-East Power, Central Power, East-West Power, and SK Innovation E&S. This tender attracted widespread attention, as many speculated whether any bidders would submit prices below the ceiling price secretly set by the power authorities. Bidders were required to provide a total LCOE bid, which includes facility investment costs such as generator retrofitting and fuel costs, with fuel costs being the critical factor. Given the currently high prices of clean hydrogen and ammonia, it was widely expected that only a few bidders could meet the ceiling price. It is reported that KOSPO was the only one among the five bidders to submit a price within the ceiling. Other bidders failed to meet the ceiling price and were excluded from the evaluation early on. KOSPO plans to implement a 20% ammonia co-firing power generation project in its existing Samcheok Green Power Unit 1. The unit, completed in December 2016, still has a remaining design life of approximately 20 years. It is expected to sign a 15-year power supply contract with the KPX next month, with commercial operation of the co-firing system starting as early as 2027. During its remaining lifespan, the project is expected to reduce carbon emissions and support the achievement of the NDC targets. KOSPO has been preparing for the coal-ammonia co-firing project since early on, anticipating participation in CHPS. In April of this year, KOSPO became the first bidder to meet the licensing requirements by obtaining a "power generation project modification permit" for Samcheok Green Power Units 1 and 2 from the Electricity Commission. In the same month, KOSPO signed a contract with Samsung C&T to build a 30,000-ton ammonia storage tank and loading and transportation facilities near Samcheok Green Power, which is expected to be completed in July 2027. Meanwhile, it was confirmed that the bidding volume for this tender reached 5,782 GWh, slightly short of the originally announced 6,500 GWh. An industry representative commented, "The competition was not effectively established, which is somewhat regrettable. It is hoped that future improvements to market design will attract more bidders to participate." https://lnkd.in/g8b4VWH7
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A member of the Korean Consortium (K-Consortium) backing Pilot Energy Limited’s (ASX:PGY) Mid West Clean Energy Project, KOREA SOUTHERN POWER CO., LTD., (KOSPO) has been named as the only successful bidder for Korea's first national public clean ammonia auction (the #CHPS). The CHPS is set to establish price benchmarks for blue and green ammonia through 15-year binding supply agreements and provide visibility into #CCUS and freight costs 👉 https://lnkd.in/gPHY9vu9 #ASX #PGY #carbonstorage #cleanenergy #energytransition #ammonia #hydrogen
The results of Korea's first national public clean ammonia auction, known as CHPS, were released yesterday afternoon. CHPS is set to establish price benchmarks for blue and green ammonia through 15-year binding supply agreements and provide visibility into CCUS and freight costs. Yesterday, a Korean media outlet timely published a report. Thanks to ChatGPT for translating it into English ( be mindful of translation accuracy)- "The CHPS has been awarded to KOSPO's Samcheok Green Power Unit 1. According to industry sources on the 22nd, the KPX has notified KOSPO of its selection as the priority negotiation target for CHPS. The competitive bidding for CHPS, which closed on the 8th, saw participation from five companies, including KOSPO, South-East Power, Central Power, East-West Power, and SK Innovation E&S. This tender attracted widespread attention, as many speculated whether any bidders would submit prices below the ceiling price secretly set by the power authorities. Bidders were required to provide a total LCOE bid, which includes facility investment costs such as generator retrofitting and fuel costs, with fuel costs being the critical factor. Given the currently high prices of clean hydrogen and ammonia, it was widely expected that only a few bidders could meet the ceiling price. It is reported that KOSPO was the only one among the five bidders to submit a price within the ceiling. Other bidders failed to meet the ceiling price and were excluded from the evaluation early on. KOSPO plans to implement a 20% ammonia co-firing power generation project in its existing Samcheok Green Power Unit 1. The unit, completed in December 2016, still has a remaining design life of approximately 20 years. It is expected to sign a 15-year power supply contract with the KPX next month, with commercial operation of the co-firing system starting as early as 2027. During its remaining lifespan, the project is expected to reduce carbon emissions and support the achievement of the NDC targets. KOSPO has been preparing for the coal-ammonia co-firing project since early on, anticipating participation in CHPS. In April of this year, KOSPO became the first bidder to meet the licensing requirements by obtaining a "power generation project modification permit" for Samcheok Green Power Units 1 and 2 from the Electricity Commission. In the same month, KOSPO signed a contract with Samsung C&T to build a 30,000-ton ammonia storage tank and loading and transportation facilities near Samcheok Green Power, which is expected to be completed in July 2027. Meanwhile, it was confirmed that the bidding volume for this tender reached 5,782 GWh, slightly short of the originally announced 6,500 GWh. An industry representative commented, "The competition was not effectively established, which is somewhat regrettable. It is hoped that future improvements to market design will attract more bidders to participate." https://lnkd.in/g8b4VWH7
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All Stop' for the permit to develop Renewable Energy in Jeonnam by 2031 due to the lack of Grid now and no plan to build Grid in Jeonnam. In this situation, Our hometown, Gochang is the only & best place where a new Grid is being built by 2025 and moreover, our partner RE100 company constructing their own facilities and big sized Grid by 2026 too in Gochang as the a potential CPPA Offtaker too. With these merit of hometown, Gochang, We, GCR as the Jeonbuk Gochang local RE developer, endeavoring to develop & deliver the RE projects and Grids in hometown, Jeonbuk Gochang region with the partner RE100 company and together discussing private Grids establishment more in Gochang. Also, walking in same steps with local authorities and residents, We, Gochang Renewable, Inc.(GCR) as the Jeonbuk Gochang local RE developer, to endeavor more aggressively to develop and deliver the RE projects in hometown, Gochang, Jeonbuk. #Grid #Substation #Transmission_Line #RE100 #RE100_Firm_in_Gochang #CPPA #GCR #Gochang #Jeonbuk https://lnkd.in/gARi3Rmi
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Co-Founder & Head of Institutional Sales Alpine Capital
3moIt would seem this is very goos for Pilot Energy Limited . PGY.ASX